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US Solar Energy Industry’s Perspective on a National Performance Based Incentive
Rhone Resch
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US PV Market - 2008
• PV market grew by 71%• On-grid PV grew by 81% • Off-grid PV grew by 21%• Residential +32%• Commercial +110%• Utility +97%• Domestic manufacturing
continues to grow
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Domestic PV Cell Manufacturing (MWDC)
2007 2008p Growth
Production 271 414 53%
Capacity 415 685 65%Source: Greentech Media Research/Prometheus Institute
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PV Capacity Additions – On vs Off Grid
Sources: SEIA, IREC, PV News
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State RPS Solar/DG Carve-Out Impacts
• State RPS requirements will help ensure annual installations stay strong for in over the next few years.
• RPS requirements:– 2009 increase of 37%– 2010 increase of 58%– 2011 increase of 245%
State 2009 2010 2011
AZ 3 5 52
CO 1 1 31
DC 0 0 0
DE 0 0 1
MD 3 9 9
MO 0 0 23
NC 0 5 17
NH 0 4 4
NJ 42 58 63
NM 0 0 144
NV 17 2 17
NY 2 2 2
OH 5 8 26
PA 2 23 16
Total 74 117 404
Solar Capacity Additions Necessary to Satisfy Solar and DG Carve-Outs (MW)
Source: Lawrence Berkeley National LaboratoryIncludes PV and CSP
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2008 Breakthrough Success
• Tax Credit Extension - 17 Votes in Congress– Filibustered 9 times
• Bailout Bill – October 3– Extended tax credits for 8 years– Removed residential cap for PV– Repealed utility exemption– Provides AMT relief for commercial and residential
• Additional Solar Legislation Introduced– SOLAR Act– Feed-in Tariff– Solar Reserves
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Changes in Washington
• Obama Administration– Carol Browner – WH Energy and Climate Coordinator**– Dr. Steven Chu – Secretary of Energy– Nancy Sutley – Council on Environmental Quality– Lisa Jackson – Environmental Protection Agency– Van Jones – WH Green Jobs Advisor– Cathy Zoi – Assistant Secretary EERE
• Congress– Waxman replaces Dingell Chairman of House Committee on Energy
& Commerce– Markey Subcommittee on Global Warming– Senate – Democrat majority increases, more difficult for Republican
filibuster
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HR 1 American Recovery and Reinvestment Act• 19 Provisions to Benefit Solar Companies
– Improves existing tax credits• Refundability• Remove subsidized energy financing penalty
– Improves loan guarantee program– Increases government procurement ($25 billion)– Creates new manufacturing tax credits– State energy program funding ($3.1 billion)– Expands CREBS funding ($1.6 billion)– Funds school repair and construction ($53.6 billion)– Funds water treatment repair and construction ($6 billion)– Supports construction of new transmission– Increases access to federal lands– Increases DOE solar appropriation– Improves tax credit for solar water heating – Funds worker training– Increases profile of solar with top political leaders
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Feed-in Tariff Policy Discussion
• Pros– Upside potential and good outcomes in Europe– Rapid, large market development– Encourages broader range of technologies and applications (CSP in
Spain, BIPV in Germany and France)– Local FiTs provide low-cost implementation option for utility’s
compliance with RPS• Cons
– FiTs are difficult to structure, can be a large cost to the government and can lead to market failure
– National FiT inconsistent with US electricity law – Will be a heavy political lift in U.S.
• Education of Congress• Opposition by 4,000 utilities
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Feed-in Tariff Policy Discussion
• How to Pass and FiT in the US
– FiT not a single policy but a set of policies with many possible combinations
• Solar Act– Net Metering– Interconnection– Low cost permitting
• Renewable Energy Bank – Energy Bill
• Carbon Cap and Trade– Performance-based cash incentive– Dedicated funding source
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